The miners' giants are listed: the road to transformation is long and long

According to the media on July 31, the world's second-largest bitcoin mining machine manufacturer Jia Nan Zhizhi reportedly submitted a listing application to the US Securities and Exchange Commission (SEC), raising funds of 200 million US dollars.

This also means that Jianan Zhizhi has become the first “mineral giant” to officially go to the US IPO among the three major domestic mining machine manufacturers (the other two are Bitland and Yibang International).

This is not the first time a mining machine manufacturer has applied for a listing, nor is it the first time that Jianan Zhizhi has submitted a listing application.

With the rapid development of digital currency, the mining industry plays the role of producer of digital currency. The importance of the mining industry can be seen in the 6th chapter of Bitcoin White Paper released by Nakamoto.

"According to the agreement, the first transaction in each block is a special transaction, it will generate a new coin, and the ownership is the generator of this block. This will make the node support network reward, also Provides a way to distribute coins into circulation—in this system, there is no decentralized authority to issue those coins anyway. So steadily increase a certain number of new coins into circulation, It seems that gold miners continue to use their resources to increase gold in circulation. In our system, the resources consumed are CPU working hours and the electricity they use."

It can be seen from this passage that the essence of mining is “the printing of money and the distribution of money in the absence of centralization”, and mining is a fair process of distributing money. Mining is a game of competition between miners. There is no administrative threshold for this game. You can join if you are willing to consume resources and capital.

The mining machine is the infrastructure that supports this game. The mining machine is the computer used to earn bitcoin. These computers generally have professional mining crystal elements, and they use the method of burning graphics cards. . Looking back at history, bitcoin hardware mining experienced CPU-GPU-FPGA-ASIC-Jianan Zhizhi 7nm ASIC chip, the mining hardware equipment and the iteration of mining methods promoted the growth of Bitcoin network computing power and the cost of mining The increase in computing power and the decline in bitcoin prices have affected the development of the former.

According to official data, Jianan Zhizhi was established in 2013 and has been the world's leading developer of supercomputer chips. In the same year, a mysterious figure in the currency circle also saw the business opportunity of the mining machine – "roasted cat", the real name Jiang Xinyu It was the earliest batch of Chinese people who came into contact with Bitcoin. It was thin, with messy hair, big pants and flip-flops. Although it looked like a "silk", he was indeed a genius.

In 2001, the 15-year-old roast cat, ranked 11th in the national total score, was admitted to the Junior College of China University of Science and Technology from Hunan Shaoyang No. 1 Middle School;

In 2009, the 23-year-old roast cat obtained a master's degree from the University of Science and Technology of China with the paper "Building a Safe Thread Mechanism by Formalization";

In 2011, the roast cat went to Yale to study and read Bo, and dropped out of school, did not get a doctorate;

In 2011, he co-authored the paper "Proof of Code Optimization and Program Specification Conversion in Compiler" with Zhongda University's classmate Fan Dawei (David), published in the domestic "Small Microcomputer System" Journal No. 7 P1400-1405 page;

At the same time, the roast cat listened to David talking about bitcoin, and began to study the Nakamoto paper…

In June 2012, the American Butterfly Lab (English name is Butterfly Labs, the US Bitcoin mining hardware manufacturer) announced the pre-sale of ASIC mining machine, the calculation power of 5GH / sec, July 12, roast cat and David in Shenzhen , registered Bit Spring Information Technology Co., Ltd.;

On August 7, Roasted Cat and David made an IPO (now ICO) on the GLBSE exchange, and the stock name was Asicminer. The total share capital is 400,000 shares, 59% of which is held by the Baked Cat Company (Bitquan Bitfountain). The issue price is 0.1 BTC/share, and a total of 163,962 shares are issued. Based on the exchange rate at the time, it raised about 1 million RMB.

Wu Jihan and Xiao Qiang (Xie Jian, Rock Xie) both invested 1000 BTC, both of whom received 10,000 shares, plus 2,500 shares. On August 9th, the roast cat posted in the bitcointalk forum: "ASICMINER: Entering the Future of ASIC Mining by Inventing It", introducing the roasting cat mining machine and responding to outside questions.

Inspired by the plan of the American Butterfly Lab, Dr. Zhang Nanyu, a former North Airlines doctor who has been doing FPGA mining machines, is known as "Pumpkin Zhang" – the founder of Jia Nan Zhizhi. In January 2013, Zhang Nangeng made a chip one month ahead of the roasting cat. And the mining machine, named "Avalon" (Avalon, is an important island in the legend of King Arthur, the holy place of Celtic mythology, the central belief of the ancient Druid religion.). This is the world's first bitcoin mining machine with a dedicated chip, a milestone in the history of Bitcoin.

Unlike the roast cat, Zhang Nanyi does not do it in a crowdfunding way, but directly makes a pre-sale to raise funds. The pre-sale method is very strange: does not promise the delivery date, does not do after-sales service, does not accept the change of the delivery address, and finally does not ship or refund.

Although many people think that Zhang Nan is not a madman or a liar, there are always exceptions. The Avalon mining machine with a unit price of 9,200 yuan has received hundreds of orders within a few days. In less than two months, it has been fixed. The order was shipped; at that time, an Avalon miner could dig up an average of 10 bitcoins per day. According to the bitcoin price at that time, the person who bought the miner could return to the book in two days; because the Avalon mine at that time The machine did not achieve mass production, only the few hundred units that were pre-sold, and the last mining machine was fired to 400,000 yuan.

In the early days of the Avalon mining machine, Zhang Nanyi was almost alone. The production capacity was limited. The first three batches delivered a total of 1,500 mining machines. In April 2013, Zhang Nanxuan and his partner Li Jiaxuan founded the “Beijing Jianan Zhizhi”. Information Technology Co., Ltd".

At that time, the roast cat has already set up a “roasted cat mine” in Shenzhen Gongming Street. On the 23rd, near the Science and Technology Park, signed an agreement, “May 1 officially launched”. Wang Song (a partner of the roast cat factory and a friend of David) said, "The whole room is only half (mining machine), accounting for 42% of the total network." At the same time, the roast cats gradually withdrew from the mining pools and started Solo mining. The deployment power fluctuates between 30T and 40T.

In May 2013, the computing power market became the world of roasting cats. Because of the excessive and concentrated computing power, Wang Song said that for two consecutive months: "The panic that caused the community to attack 51% of the attacks twice."

How much money does the selling machine make?

According to the first quarter 2013 earnings report of Roasted Cat Company, a total of 67,515.09 bitcoins were paid. The number of dividends paid per share: February 28, 0.023544 bitcoin, March 6th, fell to 0.019163 bitcoin, March 20, increased to 0.025998 bitcoin, March 24 to April 3, dividend amount Both are falling, with a minimum dividend of 0.002556 per share. After Bitcoin, the dividends gradually increased. On May 15, it rose to the highest point of 0.036222 Bitcoin. On May 29, the dividend was 0.026538 Bitcoin. At this time, the average price per share of the roasted cat is 2.5 bitcoin, which is 25 times higher than the IPO.

In July 2013, Avalon sent a batch of 10,000 chip orders to Switzerland. At this point, the price of roast cats rose to 5 BTC/shares, the stock returns reached more than 500 times, and about 140,000 BTCs were distributed to shareholders. The peak of computing power reached 47T.

In August 2013, Avalon sent another batch of orders. At this point, the roast cat sold 20,000 yuan, ready to develop 40nm chip; in September 2013, Avalon mining machine finally began mass supply.

With the rising share price of roast cats and the skyrocketing price of bitcoin, Wu Jihan became a multi-millionaire. The profit of the chip and the mining machine gave him new inspiration. He decided to do it himself. In October 2013, Wu Jihan established Bit China. Soon, the technology took the Jank group to join.

At that time, the key to the implementation of the miner's chip was to reduce the power consumption ratio, that is, the power consumption/power (W/THash). The lower the power consumption ratio means the same example, the less power the chip consumes, to achieve this goal. Either technical details are optimized, but it takes time and effort, or directly adopts more advanced technology (a GHash mining machine in Ukraine, which is 8 times the power of roasting cats, using 55nm technology), but it has become expensive. The multi-millionaire Wu Jihan is not bad money, so the development of a bitcoin mining machine chip, for the IC veteran's Jank group, the difficulty is not technology, but lies in capital. Fortunately, the money came from Wu Jihan. Not long after, the first generation of TSMC 55nm chip S1380 and ant mining machine S1 was successfully developed. Due to the huge technological advantages, the S1 power consumption ratio is lower than other mining machines. Bitcoin’s sales exceeded 100 million, and the original accumulation was successfully completed.

Jia Nan Zhi Zhi and Bit China are rising rapidly, but the roast cat is also a little powerless. In October 2013, the research and development of the second generation chip of the roast cat miner was delayed, and the net computing power of the roast cat miner dropped rapidly. Only less than 4% left.

The price of Bitcoin will directly affect the shipments of miners, and the price of Bitcoin will be affected by various factors (policy supervision, etc.), causing the transaction to rise or fall.

In the history of Bitcoin development, 2014 was a "magic" year.

On the one hand, Bitcoin network computing power reaches 100PH/S; HMRC (British Tax Administration) classifies bitcoin as assets or private funds, meaning that bitcoin mining or exchange does not charge VAT; US government auctions more than 29,000 Bitcoin confiscated from the Silk Road, indicating that Bitcoin is no longer considered an illegal trading currency; the first bitcoin derivative transaction; Microsoft, Dell, etc. accept bitcoin payments;

On the other hand, 2014 was the year of the Bitcoin Great Depression. The lowest price was less than 900 RMB, which was 88% lower than the peak at the end of 13 and the beginning of 14 years. The Mt Gox exchange also went bankrupt in the same year.

In January 2014, the third generation chip BE300 developed by the roast cat team came out, and at the end of April, the sample was handed. In May, the roast cat began selling chips;

In September 2014, the roast cat invested in Huai'an Mine. Junyi, who had represented the roast cat product, introduced Lin Qingxin to the roast cat. Fujian people, known as the “shareholder of Shuanghui Group”, according to media reports, the first meeting, Lin Qingxin took the flight license. Photographed on the table, said that can help the roast cat to establish a new mining plant in Huai'an, "to do in the name of cold storage, you can enjoy the subsidies of the Jiangsu provincial government," but the conditions are: roast cat first pay electricity, Lin Qingxin to the venue plus one degree 4 Dime money and electricity charges.

"After we put 6,000 sets of mining machines in, the problem is coming," Wang Song said, "not a design problem, not a process problem," but Nantong Fujitsu. When the chip is packaged, "their packaging technology is not good." Leading to the inside of the chip, "there is air between the gel and the placement", it expands after being heated, and "the chip will burst."

In 2014, the roasting of cats and rivers, Zhang Nanyu's Jia Nan Zhizhi company lost 250,000 yuan, the chip and mining business faltered, but Bitian mainland has reversed the production of 28nm-based ant S1384 chip and S5 mining machine.

Wu Jihan said in an interview in 2015, "The low price of the currency is often a good thing for the mining industry. Only competitive manufacturers can survive." The market is picking up in 2015, and the high-performance mines on the market are on sale. The machine only has ants S5. Jia Nan Zhi Zhi passed the winter, but because of the missed opportunity, Bitian became the world's largest producer of bitcoin mining machines, and Jia Nan was ranked second.

Jia Nan Zhi Zhi did not admit defeat, the market also gave Jia Nan Zhi Zhi to prove his chance – rapid financing.

Rapid financing has also brought about a rapid increase in business revenue.

According to the 2018 Jianan Zhizhi prospectus, from 2015 to 2017, Jianan Zhizhi's operating income was 47.699 million yuan, 316 million yuan, 1.308 billion yuan, and the profits were 1.511 million yuan, 52.544 million yuan, 3 6.1 billion yuan, a 200-fold surge in three years.

In contrast to the financing situation and the rapid growth of business, it is the rough road to the listing of Jianan Zhizhi:

(1) First War A shares

In June 2016, Lu Yitong, whose A-share listed for 1 year and 4 months, began to plan for the first major asset restructuring, and the object of restructuring was Jianan Zhizhi.

Luyitong plans to acquire all the shares from the 14 shareholders of Jianan Zhizhi in a cash payment of 1.061 billion yuan and a share payment of 1.999 billion yuan. The total transaction price is 3.06 billion yuan.

If this acquisition is successfully completed, Jianan Zhizhi will “listen on the backdoor” and become a wholly-owned subsidiary of Luyitong. Zhang Nangeng will also hold 6.73% of the shares of the listed company, with a net worth of more than 500 million.

However, the acquisition was eventually terminated due to objective factors such as the domestic market environment and regulatory policies. Jia Nan Zhi Zhi was the first and most successful listing attempt, and it came to an end.

(2) Transfer to the new three board

Since then, Jia Nan Zhi Zhi has disappeared in the capital market for nearly 10 months. When it reappeared, Jia Nan was already preparing for the new three board.

In August 2017, Jia Nan Zhi Zhi began to seek listing on the New Third Board. The fortunes were not good. In September of that year, the regulation of cryptocurrencies and transactions was suddenly coming.

During the transition to the New Third Board, Jia Nan Zhi Zhi received the share transfer company's consultation opinions four times in October, November 7, November 21, and November 30, respectively. They were all asked about the influence of the policy environment and continued. Management capacity.

In March 2018, due to external factors, Jia Nan Zhi Zhi eventually smashed the new three boards.

(3) Fighting Hong Kong stocks again

After the defeat of the New Third Board, Jia Nan Zhi Zhi did not choose to be silent as last time.

On May 15th, 2018, Jia Nan Yu Zhi regrouped and re-entered the journey of listing. This time, their goal is the HKEx.

Cheng also bitcoin, defeat also bitcoin. In the 2018, when the digital currency market suffered from the cold winter and the supervision was still unclear, it was difficult to support Jianan Zhizhi's landing in the Hong Kong stock market by virtue of the profit and development prospects brought by the mining business.

On November 15, the official website of the Hong Kong Stock Exchange showed that the IPO application of Jianan Zhizhi had expired.

(4) Going to the US IPO

On July 31, 2019, the world's second-largest bitcoin mining machine manufacturer, Jia Nanzhi, reportedly submitted a listing application to the US Securities and Exchange Commission (SEC), raising $200 million.

Jia Nan has repeatedly applied for listing, and his competitor Bit China is not to be outdone.

On the evening of September 26, 2018, Bitland submitted a prospectus document on the Hong Kong Stock Exchange and officially launched the listing plan. The application subsequently failed. The reason for running Finance (Finace Run) is detailed in the article "A generation of mines, Wu Jihan, and the heart is free to show weakness."

Unlike the roast cat and the bite continent, Jia Nan Zhi Zhi does not mine or mine the mine. Most leaders want to maintain this state in order to better implement the IPO in the future.

Bitcoin is "straightforward" in the world of Bitcoin. Wu Jihan initiated the expansion of the dispute, created bitcoin cash (BCH), and then set off the power struggle, BCH hard forked to BCHABC and BCHSV. In the battle for power, Wu Jihan called the BTC network to support BCH. The right to speak of BCH is in the hands of a few capitalists. This is not completely decentralized. Wu Jihan and Bit China are controversial.

The chip almost determines half of the success of the mining machine manufacturers, but it must also consider the long-term road, the mining machine manufacturers need to transform.

As early as 2017, Bitcoin announced its entry into the field of artificial intelligence chips and launched the "Calculation" series of cloud AI chips. But Bitcoin does not stop there. According to the official website, artificial intelligence products are artificial intelligence chips, artificial intelligence cloud/edge products, and artificial intelligence terminal products.

Jia Nan Zhi Zhi also announced the "ABCD" project – AI, Block chain, Cloudcomputing and Data. In September 2018, Jia Nan Zhizhi released the first generation of edge computing AI chip – Kanji K210, which is positioned in the fields of artificial intelligence and edge computing, mainly used in the IoT market, and has been widely used in face recognition access control. , intelligent pest monitoring, intelligent image reading and other fields.

Jia Nan has a multi-dimensional layout, and there is no shortage of market activity.

Technically speaking, the technical level of Jianan is still open to question. According to industry insiders, the ASIC chips used in mining machines are customized chips for specific fields. The chip structure is relatively simple, and the computing power and calculation efficiency are directly customized according to the needs of specific algorithms. AI chips require massive calculation and height. Flexibility and efficient data interaction efficiency.

In addition, the production of the chip is divided into front-end design and back-end design. Jianan Zhizhi is currently limited to the front-end design and development of the chip, and then finds TSMC OEM production, and can not independently complete the mass production of the chip.

From a policy perspective, the listing regulatory policy has become stricter. On July 26, the Hong Kong Stock Exchange issued a heavy regulatory document, “Consultation Summary on Backdoor Listings and Other Shell Stocks Activities”, which mentioned that the backdoor listings were popular in recent years, and the market frequently saw a lot of related activities. Into the listed issuer's control to obtain its listing platform (rather than related business) with a view to the ultimate backdoor listing, on the other hand, the listed issuer conducts corporate actions (such as selling business) in order to sell the listing platform. These activities create opportunities for market manipulation and undermine investor confidence in the market.

Some people are optimistic, and some people sing empty, the subculture of anti-ASIC chip professional mining machine has been formed. With Monroe's conversion mining algorithm to combat ASIC professional mining machines, and a developer at Ethereum also announced at the conference that they are studying algorithms against ASIC professional mining machines, digital currency has formed a huge anti- ASIC chip professional mining machine culture.

In summary, the listing of Bitcoin mining machine manufacturers represented by Jia Nan Zhi Zhi may continue to bump.

Whether the blockchain or cryptocurrency business has reached a consensus on a global scale, whether the field is in line with the business with real value, and can support the sustainable development of listed companies, relying on the subjective judgment of the regulatory layer, this actually exists very much. Great uncertainty.